Norway Idex Biometrics Tender

IDEX Biometrics ASA a leading provider of advanced fingerprint identification and authentication solutions has successfully obtained subscription for 120 million new shares at NOK 0.75 per share raising NOK 90.0 million USD 9.9 million.This fundraising will meet the companys capital requirements and the board expects based on current market conditions that these funds will take the company through to profitability.The new shares were placed to eight shareholders about 1 below the closing price at Oslo Brs on 15 November 2019. The board believes that the private placement is an appropriate funding mechanism at the current time and is in the best interest of the company and all of its shareholders. The board considers it is appropriate to waive the existing shareholders preferential right to subscribe for new shares because the placement secures timely financing for the company while balancing shareholders dilution and risk.The placement is divided into two tranches. Tranche one consisting of 55.4 million shares will be issued as soon as practical under the boards current authorization to issue shares in private placements. The second tranche consisting of 64.6 million shares will be issued subject to approval by an extraordinary general meeting. The board has resolved to call an extraordinary general meeting to be held on or around 12 December 2019. A notice of the extraordinary general meeting will be issued in due course. The company will issue a listing prospectus in connection with tranche two.Following the tranche one capital increase IDEX will have a share capital amounting to NOK 98012120.85 divided into 653414139 shares at NOK 0.15 nominal value per share. Following the tranche two capital increase IDEX will have a share capital amounting to NOK 107698309.80 divided into 717988732 shares at NOK 0.15 nominal value per share.The companys strategy to be a leader in delivering fingerprint solutions to mass markets is based on a unique flexible and cost efficient offchip technology. Recent milestones achieved by the company highlight the tangible progress the company has made and validates the growing demand for biometric solutions. In the biometric payment card market the companys largest potential revenue opportunity there are positive developments in manufacturing and certification while the companys remote enroll solution has the potential to become the industry standard. In the access control market the company is seeing the beginning of shipments and design-in wins and the company expects that both markets will see volume shipments in 2020.Stan Swearingen CEO of IDEX said We are delighted to secure this funding from existing shareholders. This funding will secure necessary capital to meet the impending market growth and large-scale commercialization of biometric smart cards and enable IDEX to be a leader in the large and growing biometric smart card market. This investment is a strong endorsement of the significant value-creation potential of IDEXs fingerprint biometric technology for its customers partners and shareholders.